The present numerical analysis has been performed for obtaining the heat transfer characteristics of microencapsulated solid-liquid phase change material and water mixed slurry flow in a circular tube heated with constant wall heat flux. The energy equation was formulated by taking into consideration of the heat sink due to melting process and the heat transfer enhancement induced by the motion of microcapsules. The heat source function in the energy equation was derived from solutions for melting in a spherical latent heat material. The governing parameters were found to be latent heat material concentration, pipe diameter. microcapsule diameter, heat flux, and the slurry velocity. The numerical results revealed that mean heat transfer coefficient for latent microcapsule slurry was about 1.3∼1.8 times greater than that for the single phase of water.